A Custom Tailor Wishes to Use Target Profit Pricing to Establish

question 270

Multiple Choice

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

• A) $520
• B) $1,040
• C) $1,880
• D) $2,080
• E) $10,000

---

Definitions:

Abnormal Behavior

Actions or behaviors that deviate significantly from societal norms or expectations, often indicating psychological issues or disorders.

Maladjustment

A psychological condition resulting from the inability of an individual to adapt or cope with the demands and stresses of daily life.

Personal Distress

A negative emotional response to witnessing others' suffering, which can motivate empathetic concern or lead to withdrawal to alleviate one's own discomfort.

Medical Approach

A strategy in healthcare focusing on the diagnosis, treatment, and prevention of diseases using conventional scientific methods.